Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmentalagency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paidby the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student.The regular price to participate in the program is $6.10 per day. After analyzing its costs, Hardyke calculates that, with its operatingdeficit, the full cost of each student for a day is $8.60. All programs that Hardyke offers are unaffected by the number of studentspaying the nominal fee.Required:b. Which price would Hardyke Group prefer?Note: Enter your answer to 2 decimal places.c. Which price would the Education Department prefer?Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.d. If Hardyke provides an average of 4,100 student-days for in-need children in a given month, what is the monthly value of thedifference between the prices in full capacity?b. Pricec. Priced. Difference$$$0.00 per day0.00 per day0 per month

Assigning costs to cost items, which often comprise a corporation's goods, services, and other…

Answered: Hardyke Group operates a local…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Theodore County uses a General Fund, a Special Revenue Fund, and an Enterprise Fund. The Special Revenue Fund is financed by a grant from the state to provide care for the elderly. The Enterprise Fund provides bus service both to the public and to government agencies. Prepare entries to record these transactions. Identify the funds involved in each case. a. The Enterprise Fund bills the Special Revenue Fund $15,000 for bus service provided to the elderly. b. The General Fund receives an electricity bill for $20,000 and prepares a voucher to pay the bill. The General Fund then bills the Special Revenue Fund for $3,000, representing the portion of the electricity bill applicable to the senior citizens building. C. The Enterprise Fund is short of cash to pay its bills. The General Fund lends the Enterprise Fund $50,000 in cash, which will be repaid before the end of the year. d. The General Fund pays cash of $100,000 to the Enterprise Fund as a subsidy to help meet the operating costs of…
The following transactions relate to Newport City’s special revenue fund. In 2020, Newport City created a special revenue fund to help fund the 911 emergency call center. The center is to be funded through a legally restricted tax on cellular phones. No budget is recorded. During the first year of operations, revenues from the newly imposed tax totaled $495,000. Of this amount, $445,500 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year. Expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $441,000. Of this amount, $412,335 was paid before year-end. During the year the state government awarded Newport City a grant to reimburse the City’s costs (not to exceed $159,000) for the purpose of training new 911 operators. During the year, the City paid $151,050 (not reflected in the expenditures above) to train new operators for the 911 emergency call center and billed the state government.…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Home Meals On House- keeping $ 924,000 $ 267,000 $ 405,000 $ 252,000 157,000 95,000 Total Nursing Wheels Revenues Variable expenses 477,000 447,000 115,000 152,000 205,000 200,000 Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* 69,200 42,500 115,300 184,800 411,800 8,400 20,200 40,200 40,200 7,200 38,800 20,600 15,100 36,300 53,400 122,200 81,000 167,200 50,400 122,400 Total fixed expenses Net operating income (loss) $ 35,200 $ 29,800 $ 32,800 $ ( 27,400) *Allocated on the basis of program revenues.
Which one of the following costs is most likely to be deductible? Group of answer choices Fines paid for dumping toxic waste into a City of Denver park. Bribes to a city health inspector to ensure an “A” rating to a restaurant. The telephone bill for the headquarters of an illegal stolen car parts organization. Advertising costs for a Colorado marijuana dispensary.
sity in Philadelphia used a biplane to pull a sign promoting its evening program, and one in Mississippi you 5-38 Advertising Expenditures and Nonprofit Organizations Many colleges and universities have been extensively advertising their services. For example, a upiu sity in Philadelphia used a biplane to pull a sign promoting its evening program, and one in Mississin designed bumper stickers and slogans as well as innovative programs. Suppose Hilliard College charges a comprehensive annual fee of $14,800 for tuition, To and board, and it has capacity for 2,000 students. The admissions department predicts enrollmento 1,700 students for 20X1. Costs per student for the 20X1 academic year are as follows: Variable Fixed Total Educational programs $5,200 $ 3,900 $ 9,100 Room 1,100 2,300 3,400 Board 2,500 500 3,000 $8,800 $ 6,700" $15,500 *Based on 1,700-2,000 students for the year. The assistant director of admissions has proposed a 2-month advertising campaign using radio and television…
Caring Shop is a gift shop located in The Natural History Museum. Caring shop has annual sales revenue of $850,000. Additionally, the Natural History museum has investment income of $550,000 from its endowment, and an annual operating budget of $3 million. Both the income from the gift shop and the endowment income are used to support the exempt purpose of the museum. The balance of funding required for annual operations is provided through admission fees. Dan Nolan, a new board member, does not understand why the museum is subject to tax at all, particularly because all of the entity's profits are used in carrying out the mission of the museum. Assume instead that the endowment income is reinvested in the endowment fund, rather than being used to support annual operations. Calculate the amount of unrelated business income.
To improve its recreation facilities and to reduce its unemployment rate, Empire State created theTiconderoga Trails Special Revenue Fund. By law, all traffic fines collected by the state policewere directed to be deposited into the Ticonderoga Trails Special Revenue Fund, and used only to payfor the supplies and salaries of individuals employed to create new hiking trails in TiconderogaState Park. There was no balance in the fund at the beginning of 2021. The Fund had the followingtransactions and events during the calendar year.1. The legislature adopted and the governor approved a budget. Estimated traffic fine revenueswere $1,500,000. Appropriations were for parks and recreation program salaries of $1,300,000and for parks and recreation program supplies of $180,000.2. Received traffic fine revenues of $1,520,000 during the year.3. Paid salaries of $1,250,000 during the year.4. Incurred a liability of $30,000 for salaries earned by employees during the last work week inDecember that…
A Government University has RO 15000 cash on hand in an appropriated fund. The University signs a purchase order for RO 7000 to purchase new projectors and systems deliverable in three months. The purpose of writing encumbrance in the ledger is:
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance. Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Total $ 924,000 469,000 455,000 70,500 43,500 114,100 184,800 412,900 $ 42,100 Home Nursing $ 264,000 119,000 145,000 8,900 20,300 40,200 52,800 122, 200 $ 22,800 Meals On Wheels $ 409,000 194,000 215,000 40,800 7,300 38,800 81,800 168, 700 House- keeping $ 251,000 156,000 95,000 20,800 15,900 35,100 50,200 122,000 $ 46,300 $ (27,000) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last…
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance. Program administrators' salaries. General administrative overhead* Total fixed expenses Net operating income (loss) Total $ 923,000 474,000 449,000 69,300 43,100 114,100 184, 600 411,100 $ 37,900 Req 1A Home Nursing $ 265,000 119,000 146,000 Req 1B 8,200 20,600 40,300 53,000 122, 100 $ 23,900 *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $37,900 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. Req 2A The…
Southwestern Freight Forwarders is planning to hold a fundraising event to build an elementary school according to the company’s corporate social responsibility targets, at one of the local country It has two options for the event: OPTION 1: Crestview Country Club Fixed rental cost of $1,000 $12 per person for food OPTION 2: Tallgrass Country Club Fixed rental cost of $3,000 A caterer who charges $8.00 per person for food Southwestern Freight Forwarders has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $1,200. Tickets are expected to be $30 per person. Local freight business supporters will donate any other items required for the event. Which option provides the least amount of risk? Which option provides the greatest operating income if 600 people attend? Which option provides the greatest degree of operating leverage if 600 people attend? Which option would you choose? Why?

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